US group the St. Paul Companies plans to transfer its ongoing reinsurance operations to a newly forme...US group the St. Paul Companies plans to transfer its ongoing reinsurance operations to a newly formed Bermuda-based reinsurer Platinum Underwriting Holdings. The planned IPO represents an effort by the insurer to take advantage of soaring reinsurance premium rates in the wake of the 11 September terrorist attacks in the US.
At the time of the closing of the offering Platinum will reinsure St. Paul Fire and Marine Insurance Company and St. Paul Reinsurance Company for certain reinsurance contracts incepting in 2002. St.Paul will also transfer certain renewal opportunities and related assets of the St. Paul's reinsurance operation, St. Paul Re, in exchange for a 24.9% stake in the new company, which will have 9.9% of the voting rights.
Platinum will conduct operations through operating subsidiaries in the US, the UK and Bermuda and write property and casualty reinsurance on a worldwide basis.
Steven Newman will become chairman of the new company. Jerry Fadden will be chief executive officer.
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